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Convertible debentures cannot be issued at a discount if:

  1. A
    They are not to be immediately converted
  2. B
    They are to be immediately converted
  3. C
    Shareholder opts for redemption in cash
  4. D
    Not recited approval from SEBI

Solution & Step-by-step Explanation

Convertible debentures cannot be issued at a discount if they are to be immediately converted into shares. If they are converted immediately, it would indirectly mean issuing shares at a discount, which is prohibited under Section 53 of the Companies Act, 2013.

Practice this question

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Convertible debentures cannot be issued at a discount if:
A
They are not to be immediately converted
B
They are to be immediately converted
C
Shareholder opts for redemption in cash
D
Not recited approval from SEBI

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